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Man Group Sews Up Deal for GLG Partners

By Dealbook October 14, 2010 7:49 amOctober 14, 2010 7:49 am

Man Group said Thursday that it had completed its acquisition of GLG Partners, its American rival, giving the world’s largest publicly traded hedge fund manager a total of $63 billion of assets under management.

In May, Man Group announced that it was buying GLG for $1.6 billion to diversify its range of investment funds. Man is paying GLG shareholders $4.50 a share in cash, a 55 percent premium to the company’s closing share price before the deal was announced.

Hailing the deal as a “milestone” for the firm, Man Group’s chief executive, Peter Clarke, said in statement Thursday: “We look forward to introducing GLG’s exceptional investment management capabilities to a broader global market, and intend to make a fast start as a fully integrated business to harness cost and revenue synergies.”

Man has been under pressure to add new products on concerns that its business had become overly reliant on its flagship AHL fund, which had a loss last year.

On Wednesday, Man Group’s shares rose 4.8 percent after it said its AHL fund was up 4.5 percent for the week and was within 2 percent of the threshold at which it could collect lucrative performance fees, Investment Week noted.